PhonePe launches 'Credit Line on UPI' feature: What is it
What's the story
PhonePe, a leading fintech firm, has introduced a new feature called 'Credit Line on UPI' for its users.
This innovative service allows users to link their bank-approved credit lines with the Unified Payments Interface (UPI) on PhonePe, facilitating smooth merchant payments.
The company aims to provide consumers with the convenience of making purchases from millions of merchants while managing their monthly expenses more effectively through short-term credit.
Expansion strategy
A step toward expanding credit usage on UPI
The introduction of 'Credit Line on UPI' is PhonePe's second initiative aimed at enhancing credit usage via UPI.
This move follows the successful integration of Rupay Credit Cards on the platform.
Deep Agrawal, Head of Payments at PhonePe, emphasized the company's commitment to developing new use cases in collaboration with ecosystem partners.
The Reserve Bank of India (RBI) has also extended UPI's scope to include pre-approved credit lines, further facilitating this process.
Merchant benefits
PhonePe's new feature to boost merchant sales
The 'Credit Line on UPI' feature is not just beneficial for consumers, but also offers advantages to merchants.
Those using the PhonePe Payment Gateway can now provide an additional payment option at checkout, potentially reducing cart abandonment and increasing sales.
To leverage this facility, merchants simply need to integrate with PhonePe payment gateway and add 'Credit Line on UPI' as a payment method.